Investors always like to analyse different mutual funds on various parameters before making an investment decision. Two key factors they look at are the potential for return promised by the scheme and the risk profile. While investors can look at the past performance of a fund to analyse the first factor, they need a tool to measure the volatility of a fund. A popular metric used for this purpose is called beta.
Extended Internal Rate Of Return (XIRR) and Compound Annual Growth Rate (CAGR) are two important metrics most investors consider while reviewing the performance of their mutual fund investments. Although both metrics are crucial to track performance, they are used in different scenarios. Hence, for any investor, it becomes essential to understand these metrics to track their portfolio performance accurately.
If you are planning to invest in mutual funds, then just knowing about a scheme isn’t enough. Whether you are an experienced investor or a beginner, it is important for you to know the various terms and metrics used to measure fund performance. Among the various terms used, trailing returns and rolling returns assess how well a mutual fund has performed over time.
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National Savings Certificate (NSC) is one of the investment options the Government of India offers. NSC investments are received and serviced by the National Small Savings Fund, managed by the government through the interface of post offices.
As per income tax laws, all taxpayers must file their Income Tax Return (ITR) for the previous year, within the prescribed due dates, during the assessment year. The due date for filing tax returns for salaried taxpayers & non-audit businesspersons and professionals is usually July 31. Sometimes this date may be extended by the Finance Ministry.
Since the terms 'financial year', 'previous year' and 'assessment year' are often used in income tax laws, it’s helpful for all taxpayers to know their basic meaning. Read on to know the meaning and importance of these terms.
With the evolution of financial markets, people may find themselves flooded with several options for investing their savings. These include fixed/recurring deposits, mutual funds, government bonds, stocks, etc. Among these options, investing in benchmark indices may pose a transparent investing strategy to equity investors, as they will be exposed towards a pre-defined basket of stocks.
Mutual funds are increasingly becoming the preferred option for retail investors, as reflected by the consistent monthly SIP inflows. As per the latest data released by the Association of Mutual Funds in India (AMFI), mutual funds received Rs. 12,976 crores through Systematic Investment Plans (SIPs) in September 2022 alone and Rs. 74,234 crores total in FY 2022-23 so far. (Source: AMFI)
When it comes to investing in equity markets, retail investors often look at the movements of the benchmark indices - NSE Nifty 50, S&P BSE Sensex BSE 200, BSE Midcap Index, BSE Small Cap Index, Nifty 500, etc. This is because such indices may be considered indicators of financial markets.
Investing may be considered more of an art than a science. Amidst a wide range of investment options, products may be selected basis individual risk profiles, financial goals and investment horizons. Within an investment portfolio, the focus should also be on diversification and optimal asset allocation.
Diversification of investment portfolio across different asset classes
